Make Sure You Have Protection from Employee Lawsuit

Posted by Risk Concepts Insurance Brokers on August 16, 2013

When you’re a small business, you tend to not have a legal department, much less an employment lawyer on retainer. You most likely don’t have anything resembling a HR department or an employee handbook that outlines what is and is not acceptable behavior in the workplace. As much as it may pain you to think it, you need protection from your employees. There is no telling when a lawsuit can arise because someone is unhappy in the workplace and feels their problem isn’t being addressed. A disgruntled employee is more likely to go the route of a lawsuit which can be costly and potentially close the doors of your small business.

Take steps to stop a potential lawsuit before it happens. Create a employee handbook that outlines employment policies and grounds for dismissal, create job descriptions for each position so that each employee knows their job duties and conduct background checks. Also put in place a zero tolerance policy regarding any unwanted behavior in the workplace and put in a reporting system that encourages employees to say something. Keep a physical record of all of the complaints that come through. Finally, look into a employment practices liability insurance policy as added protection.